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No Tax Overtime Calculator

US, 2025 tax year · figures follow that year's rules

No Tax on Overtime Calculator works out Take-home pay per period and Gross per period from Hourly rate, Regular hours in the pay period and Overtime hours in the pay period. The default figures on this page give overtime pay of 375; change any entry and the result, the working and the sources update together.

Overtime pay
375
US Paycheck and Take-Home Pay Calculator
Take-home pay per period
2,005.18
Gross per period
2,375
Annual gross
61,750
Annual take-home
52,134.68
Federal income tax
188.13
Social Security
147.25
Medicare
34.44
Additional Medicare
0
State income tax
0
How state tax was computed
flat effective rate
Local income tax
0
Total deductions
369.82
Effective tax rate on gross
15.571 %
Percentage kept
84.429 %
Regular (straight-time) pay
2,000
FLSA overtime premium (qualified overtime)
125
Section 225 overtime deduction for the year
3,250
Year-to-date gross
2,375
Year-to-date Social Security
147.25
Year-to-date tax withheld
369.82
Year-to-date take-home
2,005.18
Employer Social Security
147.25
Employer Medicare
34.44
Employer FUTA
1.62
Employer state unemployment tax
0
Employer payroll taxes
183.31
Total cost to the employer
2,558.31
Total payroll tax, employee plus employer
365
Worked out from IRS Revenue Procedure 2024-40, inflation-adjusted items for tax year 2025 and 10 other sources.
Federal withholding here uses the Publication 15-T percentage method with the standard deduction. Your employer may withhold a slightly different amount depending on your W-4.
The section 225 overtime deduction reduces income tax only. Overtime remains wages for Social Security and Medicare. Modified AGI is estimated here as annual wages less pre-tax deferrals; other income of yours or your spouse changes the phase-out.
From tax year 2026 an employer must report qualified overtime separately in Form W-2 box 12 under code TT, and the 2025 relief for a missing entry is gone. If your employer does not report it that way you cannot claim this deduction, whatever this calculator shows (IRS Fact Sheet FS-2026-13).
An estimate. Actual withholding depends on your employer's payroll system, your Form W-4 entries, and state and local rules. It is not a substitute for your pay stub or the IRS Tax Withholding Estimator.

Your figures

Updates as you type
Formatting only. This does not change the calculation.
The FLSA regular rate of pay. Used when pay is entered hourly.
Straight-time hours only. 80 is a full-time every-two-weeks cheque; the upper bound allows an annual pay period.
29 U.S.C. 207(a)(1) requires at least one and one-half times the regular rate over 40 hours a week.
Form W-4 step 3 total, e.g. 2,000 per qualifying child.
Traditional 401(k), HSA and section 125 premiums. Reduce income tax; 401(k) does not reduce FICA.
Applies that state's own rate schedule. Leave unset to use a flat effective rate instead.
A flat effective rate, used when no state is selected above.
Form W-4 step 4(c).
6.0% gross, less a credit of up to 5.4% for state unemployment tax paid on time, so 0.6% for most employers. Applies to the first 7,000 of wages a year.
Your experience rate from your state unemployment agency. Rates and wage bases are set per state, so this is not assumed.
Your state's annual taxable wage base. Defaults to the federal 7,000 FUTA base; check your state agency for the real figure.

How this is worked out

8 steps
  1. Gross for the period = 25 x 80 h = 2000 regular plus 10 h at 1.5x (37.5/h) = 375 overtime, total 2375
  2. Annual gross = 61750 over 26 pay periods.
  3. Qualified overtime compensation (the FLSA half-time premium) = 3250 a year; the section 225 deduction after the cap and the modified-AGI phase-out is 3250.
  4. Annualised taxable income = 61750 - 0 pre-tax - 15750 standard deduction - 3250 overtime deduction = 42750
  5. Federal tax on that = 4891.5; per period 188.13
  6. Social Security 6.2% on wages up to 176100 = 147.25
  7. Medicare 1.45% with no cap = 34.44
  8. Take-home per period = 2005.18
Deduction breakdowntable
itemamount
Gross pay2,375
Federal income tax-188.13
Social Security-147.25
Medicare-34.44
Net pay2,005.18
Pay stubtable
sectionitemcurrentyearToDate
EarningsRegular pay2,0002,000
EarningsOvertime pay375375
EarningsGross pay2,3752,375
Taxes withheldFederal income tax188.13188.13
Taxes withheldSocial Security147.25147.25
Taxes withheldMedicare34.4434.44
Net payNet pay2,005.182,005.18

Its 13 worked examples are re-run on every release, last on 15 September 2026. What changed

Sources and references

11 sources
IRS Publication 15-T, Federal Income Tax Withholding Methods
The percentage method for automated payroll systems annualises wages, applies the rate schedules and divides by the number of pay periods.
26 U.S.C. 225 - deduction for qualified overtime compensation, added by section 70202 of P.L. 119-21
tax years 2025-2028 · Caps the deduction at $12,500 ($25,000 joint) and reduces it by $100 for each $1,000 of modified AGI over $150,000 ($300,000 joint).
IRS Notice 2025-69, Guidance for Individual Taxpayers who received Qualified Tips or Qualified Overtime Compensation in 2025
2025 · Section II.B and the section III.B examples establish that only the FLSA-required one-half premium is qualified overtime compensation.
IRS Fact Sheet FS-2026-13, Questions and answers about the deduction for qualified overtime compensation
Supersedes the Notice 2025-69 FAQs. Deletes the 2025-only guidance and adds the employer reporting, calculation and withholding rules for tax year 2026, including Form W-2 box 12 code TT.

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What the No Tax on Overtime Calculator calculates

Estimates net take-home pay from gross wages after federal income tax withholding, Social Security, Medicare, state tax and pre-tax deductions.

How to use this No Tax on Overtime Calculator

Enter Hourly rate, Regular hours in the pay period, Overtime hours in the pay period and Overtime rate multiple. Take-home pay per period updates as you type. Change one figure at a time to see what drives the result.

How the result is worked out

Open “How this is worked out” beside the result for the step-by-step calculation behind Take-home pay per period, Gross per period and Annual gross.

The method follows IRS Revenue Procedure 2024-40, inflation-adjusted items for tax year 2025, IRS Revenue Procedure 2025-32, modifying Rev. Proc. 2024-40 for the One Big Beautiful Bill ACT (P.L. 119-21), IRS, Federal income tax rates and brackets, Social Security Administration, Contribution and Benefit Base and IRS Publication 15-T, Federal Income Tax Withholding Methods.

What you can compare

Change one input at a time to see how it affects Take-home pay per period, Gross per period and Annual gross. The inputs you can vary are Hourly rate, Regular hours in the pay period, Overtime hours in the pay period, Overtime rate multiple, Pay frequency and Filing status.

Understanding Take-home pay per period, Gross per period and Annual gross

An estimate. Actual withholding depends on your employer's payroll system, your Form W-4 entries, and state and local rules. It is not a substitute for your pay stub or the IRS Tax Withholding Estimator.

Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.

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Copy this code into any page. The calculator appears with the figures currently entered, sizes itself to fit, and a small credit line links back here. Free, no account, no ads inside it, no tracking of your readers. Set your own figures and fixed fields; Personal removes the credit line, sets your colour and shows you which sites use it.

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Frequently asked questions

How do I figure my no tax on overtime?

Estimates net take-home pay from gross wages after federal income tax withholding, Social Security, Medicare, state tax and pre-tax deductions. Open “How this is worked out” beside the result to see each step for your own figures.

How does the no tax in overtime work?

It needs Hourly rate, Regular hours in the pay period, Overtime hours in the pay period, Overtime rate multiple, Pay frequency and Filing status. Nothing else is required, and the figures stay in your browser.

How much more money will I get with no tax on overtime?

On the figures this page opens with, the overtime pay is 375. No single number fits everyone: it follows Hourly rate, Regular hours in the pay period and Overtime hours in the pay period, so enter your own above and the answer updates as you type.

Do you get a bigger tax refund if you work overtime?

Estimates net take-home pay from gross wages after federal income tax withholding, Social Security, Medicare, state tax and pre-tax deductions. Put your own figures in above and the working updates beside the result. For scale, the default figures on this page give 375.

What information do I need for the No Tax on Overtime Calculator?

You need Hourly rate, Regular hours in the pay period, Overtime hours in the pay period, Overtime rate multiple, Pay frequency, Filing status, Tax year and Dependent credits claimed on the W-4. The page opens with default figures that give overtime pay of 375, so you can see the scale before entering your own.

What does this No Tax on Overtime Calculator show?

It shows Take-home pay per period, Gross per period, Annual gross, Annual take-home, Federal income tax, Social Security, Medicare and Additional Medicare, with the working and any warnings for your entries.

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